Romr123 wrote: ↑February 6th, 2023, 8:19 am
18 billion brick and mortar...sure Jan. Maaaybe if you roll all WFM into it...I doubt you get the number that high.
Whole Foods annual revenue for 2017 was $16.0 billion.
Their prices have increased significantly since then; I would not be surprised if the price increases outweigh the traffic declines as the offering deteriorated under Amazon.
So it is probably accurate that all of Amazon brick and mortar is $18 billion... it still leaves Fresh and Go as such insignificant operations that they effectively are a rounding error. I doubt these Amazon Fresh stores are pulling in close to $100K a week including deliveries in many cases.
I think that the $720 Million cash impairment sounds like enough to pay for the necessary lease terminations, severance and liquidation of all Fresh stores, including the unopened ones, plus write off all the equipment and other "goodwill" assets. Unless there is a wave of WFM closings coming, which I somehow doubt after several were purged last year, that is a lot of money to set aside.
The Amazon Fresh banner is already completely toxic and will not be able to be rescued. The zombie stores alone have created incredible badwill against the brand especially where Amazon bullied their way into the locations by outbidding existing stores for the lease. The article states that they are going to quickly find what does resonate with customers. I would imagine they will have to either acquire or create a new nameplate for a new banner, and I also am going to assume the word "Amazon" is going to get left out this time. Maybe they will make a store under some variation of the "Prime" brand?